International Securities Market Association (ISMA)

International Securities Market Association (ISMA)

The International Securities Market Association (ISMA) was a self-regulatory organization (SRO) committed to monitoring transactions and encouraging compliant trading in the international securities market. In 2005, the International Securities Market Association merged with the International Primary Market Association to form the International Capital Market Association (ICMA). The International Securities Market Association (ISMA) was a financial regulator based in Switzerland that oversaw global capital markets trading, focusing primarily on Europe. In summer of 2005, ISMA and the International Primary Market Association merged to form the International Capital Market Association (ICMA) which remains in operation today. In July 2005, ISMA merged with the International Primary Market Association to form the International Capital Market Association (ICMA). The International Securities Market Association (ISMA) was a self-regulatory organization (SRO) committed to monitoring transactions and encouraging compliant trading in the international securities market.

The International Securities Market Association (ISMA) was a financial regulator based in Switzerland that oversaw global capital markets trading, focusing primarily on Europe.

What Was the International Securities Market Association (ISMA)?

The International Securities Market Association (ISMA) was a self-regulatory organization (SRO) committed to monitoring transactions and encouraging compliant trading in the international securities market. ISMA was formed to promote the development of the Euromarkets and is acknowledged as a designated investment exchange by the Financial Services Authority, which regulates the financial service industry in the United Kingdom. Founded and headquartered in Zurich, Switzerland, ISMA also had offices in London.

In 2005, the International Securities Market Association merged with the International Primary Market Association to form the International Capital Market Association (ICMA).

The International Securities Market Association (ISMA) was a financial regulator based in Switzerland that oversaw global capital markets trading, focusing primarily on Europe.
As an self-regulatory organization, the ISMA's mission and actions were carried out by its member firms.
In 2005, the ISMA was merged into a new organization called the International Capital Market Association (ICMA).

Understanding the International Securities Market Association

The International Securities Market Association helped establish standard trading procedures in the international capital market. It currently has more than 530 members located in 60 different countries worldwide, representing all the major active securities firms in the capital markets.

In July 2005, ISMA merged with the International Primary Market Association to form the International Capital Market Association (ICMA). The new organization works actively to regulate trade and promote high standards of market practice, regulation, and education in international debt capital markets. This is a necessary step to facilitate economic growth and promote a well-functioning system. By partnering with its members in all segments of the wholesale market, ICMA can focus on finding solutions to the most relevant issues. 

The International Capital Market Association achieves this through various steps. For one thing, they build trust in the industry by promoting internationally accepted standards of conduct that outline industry-accepted guidelines, rules, recommendations and standard documentation around trading and investing in debt instruments. Encouraging dialogue between the industry and authorities is central to ICMA's mission of promoting efficiency in the capital markets. The organization brings together a disparate group of people by organizing conferences, seminars, roundtables, and meetings. In doing so, it advances the regulators' mission of high professional standards. 

History of the International Securities Market Association

The organization started in 1968 after the active firms in the Eurobond market agreed to form the Association of International Bond Dealers (AIBD). It was the first version of ISMA that established a series of rules and recommendations for governing trading in the international securities market. They created certificates of achievement for global members who complied with the new structures.

In 1992, AIBD officially changed its name to the International Securities Market Association. Financial authorities viewed the institution as an exchange and subject to parts of the Swiss Federal Act of Stock Exchanges and Securities Trading (SESTA) in 1998. These rules governed ISMA until December 2016. In summer of 2005, ISMA and the International Primary Market Association merged to form the International Capital Market Association (ICMA) which remains in operation today.

Related terms:

Association of International Bond Dealers (AIBD)

The Association of International Bond Dealers (AIBD) consisted of over 530 financial conglomerates and institutions in 60 countries actively trading bonds. read more

Energy Institute (EI)

The Energy Institute (EI), based in London, England, was formed by the 2003 merger between the Institute of Petroleum and the Institute of Energy. read more

What Is the Euromarket?

The term Euromarket can refer to either the financial market for eurocurrencies or the single market for goods and services trade between EU members. read more

Futures Industry Association (FIA)

The Futures Industry Association (FIA) is a global group of futures professionals. It educates and lobbies on issues relating to markets and trading. read more

Financial Services Authority (FSA)

The Financial Services Authority was the financial services regulatory body in the United Kingdom until 2013. read more

International Securities Association for Institutional Trade Communication (ISITC)

The International Securities Association for Institutional Trade Communication (ISITC) is an organization promoting greater financial market efficiency. read more

National Futures Association (NFA)

National Futures Association (NFA) is an independent, self-regulated entity for the U.S. derivatives industry that mandates industry best practices. read more

Self-Regulatory Organization (SRO)

A self-regulatory organization (SRO) is able to create and enforce industry regulations and standards by itself.  read more